Seib & Wessel: Get Worried, Obama Tells Markets

10/4/2013 11:10AM

WSJ’s David Wessel explains why the White House feels some nervousness in the markets would help its negotiating leverage, and why it’s ruling out novel solutions like raising the ceiling unilaterally. But so far, the markets seem to think the debt ceiling fight will work itself out.

This transcript has been automatically generated and may not be 100% accurate.

the ... when does the amazing thing this week of the president trying to tell the financial markets they really ought to be more worried and concerned that Mr with an ex but maybe ... the debt ceiling is is coming up and we don't know how to raise the rate I think the problem here that the ministrations they're looking for something to put pressure on Republicans and they were coming counting on the markets freaking out ... the government shuts down in the markets right to say well that's your problem you know we were ... making any money off the panda cam NE ... but the debt ceiling really is a big deal native will be a big deal for the markets is the reason ... I think that the markets must be assuming although work it out ... what the administration is trying to say is don't be so sure that is a workout ... and it would help us if you guys were little bit nervous and are they getting one ... with few signs that the stock market has been weak but ... the bond market which is much more sensitive these things seems to be preoccupied not doing it but there is there to be certain CDS market ... the people who market analyses in the CEO slight that I can go at Goldman Sachs cuts are to remove all ... know that the Treasury does not want any of us to think that these have solutions to the debt ceiling to see invoke the fourteenth amendment and get a rounded or prioritize debt payments to pay bondholders but not everybody knows that those ... are not workable solutions you think that's the ... way it's going to remain that ... BP to raise the debt ceiling or in default there's nothing in between ... it's very hard to say I can understand why the Treasury and White House would say that because if you ever say there's a way to manage this it is asking the Republicans to raise the debt ceiling ... seems to me know if they pulled one of the strips you know say with the debt ceiling doesn't apply because a the fourteenth amendment the platinum coins something ... they don't really know how the markets with Brianna and would do with the Chinese still be willing to buy Treasury bills ... if there's gonna be some losses because the Supreme Court about their validity ... mean we saw during the financial crisis when there was this ... moment with the Treasury said ... we stand behind Fannie and Freddie's paper ... the Chinese said ... that's that's new ... already there and they're the market's reaction so ... I don't think anybody really knows that moved to a legally questionable move ... to continue financing the government by saying billions of dollars of paper seems like I think the White House read that's actually when that's one difference in their argument last family had this debate than analysts that now there to the White House is not to sing the president doesn't have that option isn't leading the league has that option are saying ... even if we did this ... you know it it's not can it gets to be legally questionable and it's not where I was your supported their Democrats who've been falling since was kind of awkward for the White House ... in what the Republicans think this is the secret plan that